2021's Vat Changes

Hi there, @ABOX. Welcome to QuickBooks Community! I'd be glad to provide information and assist you with your concern about VAT in QuickBooks Online.

You have the option to add a VAT adjustment in QBO. This way, you can adjust VAT rates according to date.

First, you’ll have to set up an account for VAT adjustment.

Here’s how:

1. Select the Gear icon at the top, then choose Chart of accounts.
2. Select New at the top right.
3. From the Account Type dropdown, select Income or Expenses.
4. Select the account’s Detail Type
5. Name your adjustment account (for example, "VAT due increase").
6. Select Save and Close.
   
   

From there, you can now add an adjustment. Here’s how:

1. Select Taxes from the left menu, then select VAT.
2. Find the tax period you need to adjust, then select Prepare return.
3. Select Adjust against the entry to be adjusted.
4. Select the Adjustment date and the Tax rate.
5. Select the Adjustment account for adjusting VAT.
6. Enter the Adjustment amount.
7. Enter notes in Memo, then select Save.
   
   

I've got these helpful resources that can further guide you about VAT in QBO:

• Create or delete a VAT adjustment.
• Set up and use VAT in QuickBooks Online.
  
  

You can also read through these articles about VAT that may come in handy in the future:

• How Automated VAT works, and how to use it.
• E-file your VAT payment.
  
  

Please let me know if you need clarification about VAT rates in QBO, or if there's anything else I can do for you. I'll be standing by for your response. Have a great day and stay safe.